Innovative Strategies for Selling Deferred Payment Services and Small Personal Loans

In the competitive banking industry, standing out in marketing financial products is key to success. This post delves into how deferred payment services and small personal loans, through innovative strategies and advanced analytical tools like Latinia NBA, can optimize their lifecycle and maximize their impact in the market.

The Importance of Small Consumer Loans in Current Banking

In banking, effective marketing of products such as deferred payments, small personal loans, and other consumer credits is crucial in an increasingly competitive market.

With the growing demand from consumers for flexible and personalized financial solutions, banks face not only an increase in revenue opportunities but also intense competition, both from traditional banking entities and new fintech actors. Consumer trends towards digital convenience and transparency in financing options demand more sophisticated and customer-focused marketing strategies.

In this context, developing a well-defined strategic approach and quickly adapting to changing consumer preferences and behaviors becomes essential to capture and maintain a significant share of the small consumer loan market.

NBA/NBO: Transforming Traditional Sales Strategies

NBA (Next Best Action) and NBO (Next Best Offer) are advanced analytical tools that allow banks to identify the most appropriate and personalized actions or offers for their customers and execute them in real-time at the most opportune moment.

These tools transform traditional sales strategies, overcoming usual challenges and increasing effectiveness in the placement of financial products and services.

Challenges of Conventional Sales Methods

These methods often have limitations, such as low conversion rates and difficulties in effectively personalizing offers, which can lead to lower customer satisfaction and reduced efficiency.

Advantages of NBA/NBO

By using real-time data and analysis, NBA/NBO allows banks to offer highly personalized products and services that align with customers’ specific needs and preferences. This improves the customer experience and increases conversion rates in selling banking products.

Lifecycle of Deferred Payment Services and Small Personal Loans

The effective marketing of deferred payment services and small personal loans involves a deep understanding of their lifecycle, which can be broken down into several key stages, each with its strategies and challenges.

Introduction and Placement in the Market

This phase is crucial for establishing a solid customer base and generating an initial revenue flow. Here, a concentrated effort is made to introduce the product to potential customers and gain their trust. This is achieved through well-developed sales strategies, effective marketing campaigns, and strong brand-building.

This is the stage where specific NBAs can be introduced, such as offering deferred payment at the exact moment when the customer makes a purchase, in transactions of a considerable amount, and for a specific list of stores.

A real-time analysis and decision engine, like Latinia NBA, can help identify and act on these key moments.

Increase in Utilization

As the product gains traction in the market, the focus shifts towards expanding the existing customer base and fostering greater engagement with the product.

Continuous communications with customers are fundamental, not only to inform them about the benefits they are obtaining but also to present them with additional opportunities, such as applying the service to other purchases or expanding their credit limits.

Real-time analysis can help personalize these communications and offers based on customer behavior and preferences and communicate them at the right moment. This strategy translates into more effective interactions, increasing customer engagement and recurring revenue.

Maintaining a Healthy Customer Portfolio

The last stage focuses on maintaining a healthy and relevant customer portfolio. In this phase, managing risks, preventing delinquency, and ensuring that the product continually adapts to a constantly evolving environment is essential.

Strategies such as customer retention, exceptional customer service, and adaptation to changing economic conditions and regulations are fundamental. At this point, real-time analysis and data-driven decisions are also vital for guiding the product toward long-term stability and continuous revenue generation.

Innovative Sales Strategies for Deferred Payment Services and Small Personal Loans

The sales strategies for products like deferred payments and small personal loans must be agile, customer-focused, and technologically advanced.

Below, we list some strategies and elements to consider when marketing these types of products. These strategies must be implemented considering their advantages, such as the potential increase in customer acquisition and satisfaction, and their challenges, such as the need for robust risk management and regulatory compliance. The key to success lies in a balanced and customer-centric execution.

Data-Based Personalization

Using tools like Latinia NBA, banks can analyze data in real-time to better understand their customers’ needs and personalize offers.

For example, identifying customers who regularly incur small overdrafts and offering them small personal loans as an alternative to their finances.

Digital Channel Integration

Presence in digital channels is essential. Implementing mobile applications and online platforms that allow customers easy access to these products increases visibility and convenience.

Targeted and Educational Marketing

Develop marketing campaigns that promote the products and educate customers about their benefits and how they can help in their daily financial management.

Loyalty and Reward Programs

Incentivizing the use of these products through reward programs can increase adoption and customer loyalty.

Risk and Compliance Considerations

While implementing these strategies, it’s vital to keep a balance with risk management and adherence to regulations. Personalization and product offerings must be aligned with the bank’s risk policies and current regulations.

Feedback and Continuous Improvement

Maintain feedback channels with customers to constantly improve products and sales strategies.

Integration of Latinia NBA’s Real-Time Analysis and Decision Engine

The incorporation of Latinia NBA’s real-time analysis and decision engine in the sales strategy of financial products represents a revolution in how banks interact with their customers. This tool combines several key features that allow more effective and personalized communication, crucial in marketing consumer loans, such as deferred payments and small personal loans.

First, the approach of Latinia NBA is customer-centric, where each interaction is based on understanding and attending to customers’ individual needs and preferences. This is fundamental to ensuring that loan offers are relevant and valuable to each customer.

Moreover, the ability to act at the right time is critical. By analyzing transactional events in real-time, Latinia NBA allows banks to be present at the most suitable moment. Transactional events, such as payments or transfers, and geolocated events, such as entering a store, are perfect opportunities to offer relevant financial services.

For example, when a customer has made a purchase of an amount susceptible to be fractioned and is invited to do so immediately as they have a pre-approved credit.

This tool is data-based, which means that we can predict future customer actions based on key customer attributes, such as product preferences, balances, or scoring. This analysis will determine the most relevant actions and offers for each customer.

Personalized interactions are another key aspect. Ensuring that each communication is relevant and adds value significantly improves the customer experience.

Finally, with Latinia NBA, banks can maximize revenue generation opportunities and strengthen relationships with their customers, which is essential for long-term success.

In the context of consumer loan sales, Latinia NBA provides numerous advantages, such as:

• Effective customer segmentation and real-time interactions.
• Context-based and geolocated communication.
• Prioritization of user preferences and control of saturation.
• Multichannel communication and secure gateway.
• Advanced graphic layer, allowing for the creation and execution of rules directly from the business areas.
• Virtual NBA, enabling the discovery of the behavior of business rules before activating them in a real environment.
• Data analysis for informed decision-making and continuous improvement.
• Compliance and prevention of banking fraud.
• Improvement of customer experience and loyalty.

In summary, integrating Latinia NBA into the sales strategies of financial products not only improves the effectiveness of these campaigns but also significantly contributes to customer satisfaction and loyalty, which in turn drives the growth of the banking business.

Looking to boost your bank’s product and service sales? Get in touch with us and an expert will advise you with no obligation.

Categories: Strategy